Best Mortgage Rates as Close as Possible
When Freddie Mac unveiled its survey for week ending June 10, it turned out that the average 30-year, fixed-rate mortgage (FRM) was just 0.01 percent above the record low set last December. That's as close to the lowest mortgage rates ever as it's possible to get.
Current mortgage rates for 30-year FRMs average 4.72 percent, compared with (according to the Freddie Mac archive) 4.71 percent during week ending December 3, 2009.
Other Mortgages Even Cheaper
Other forms of mortgage cost even less at the moment. The average 15-year FRM averaged 4.17 percent, which was the lowest since Freddie Mac started collecting data for this type of home loan back in 1991. Meanwhile, a five-year Treasury-indexed, hybrid, adjustable-rate mortgage (ARM) averaged 3.92 percent, down from the previous week's 3.94 percent. A year ago, the 5-year ARM averaged 5.17 percent.
All the mortgages mentioned above carried an average 0.7 origination point.
Current Mortgage Rates Still Not Tempting Enough
The day before Freddie Mac announced its figures, the Mortgage Bankers Association (MBA) published its survey of mortgage loan applications for week ending June 4. And they were, considering how close we are to having the lowest mortgage rates ever, surprising.
Both the purchase and refinance indices were down. The former isn't much of a shock because the home buyer tax credit program closed to new deals recently, and those who could have would have signed their contracts in advance of the scheme's deadline.
Refinancings Down Even as Many Miss Out on Savings
However, the Wall Street Journal quoted Credit Suisse June 9 as saying that almost half of all those with a 30-year FRM are currently paying at least one percent over current mortgage rates. So why are so many missing out on such substantial savings on mortgage loan payments?
Michael Fratantoni, who is the MBA's vice president of research and economics, offers one explanation:
Despite the historically low rates, many homeowners have already refinanced recently, remain underwater on their mortgages, have uncertain job situations, or have damaged credit following this downturn, and therefore may not qualify to refinance.
Of course, the number of people who are prevented from refinancing is sadly high. But there must be many who simply haven't yet gotten around to starting the process. If you're one of them, now may well be the time to bite the bullet. Begin by finding some highly competitive mortgage quotes here.